Indian economy’s medium-term outlook remains uncertain, says RBI Governor

The medium-term outlook for the Indian economy remains uncertain with supply chains and demand yet to be restored fully while the trajectory of the coronavirus spread and the length of its impact remain unknown, Reserve Bank of India Governor Shaktikanta Das said on Saturday.

According to most estimates, the Indian economy will register a record contraction of over 4.5% in the current fiscal year that started on April 1 due to the pandemic.

According to the Reserve Bank of India (RBI) Governor, the uncertainty remains as demand and supply shocks due to the coronavirus still loom large, reports Reuters.

Policy responses by the central bank appear to have worked so far, but going forward the situation would need even more careful assessment, the RBI Governor Shaktikanta Das said on Saturday.